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Fitch Sees Risks of Georgian Banking Market’s Close Down

Fitch Sees Risks of Georgian Banking Market’s Close Down

Fitch focuses attention on dominance of the two large institutions, TBC Bank and Bank of Georgia, after the acquisition of Societe Genreale by TBC Bank at 300 million.

In her interview with The FINANCIAL, Olga Ignatieva, Senior Director at Fitch Ratings CIS Ltd notes, that TBC Bank and Bank of Georgia, capturing over 60% of the domestic market, creates barriers to entry for new participants and affects competition in the second-tier banking segment. Fitch notes about the positive aspects of the deal and for inspiration of strengthening the stability of the financial sector by this transaction.

In July, Fitch Ratings published a presentation on the Georgian banking sector. The presentation discusses the Georgian banking sector in the context of neighboring emerging markets. Fitch highlighted that Georgia’s economic performance compares favorably with most of its neighbours in the context of rapid retail growth and high index of capitalization.